Action Seeks Expanded Retirement Plan Access for Small Business Workers;

Help Americans Keep Tax-Deferred Savings Longer Before Withdrawals

WASHINGTON, D.C. – An executive order to be signed by President Donald J. Trump today will begin to remove barriers that prevent more small businesses from offering workplace retirement plans and extend the time Americans can keep funds in tax-deferred retirement accounts before required withdrawals.

The Insured Retirement Institute (IRI) applauds President Donald J. Trump’s action today to remove barriers which are impeding more employers from sponsoring retirement plans and will allow for more of their employees to have opportunities to save for retirement. IRI is a leading supporter of retirement security legislation to significantly expand opportunities to save for retirement through enhanced features and improved access to workplace retirement plans.

“President Trump’s executive order is a significant step forward and removes one of the most substantial obstacles for small business employers to offer employees opportunities to gain access to a workplace retirement savings plan,” said Cathy Weatherford, IRI President and CEO. “We appreciate the President’s leadership today that will help address a compelling need to help Americans increase retirement savings.”

The executive order is expected to direct the U.S. Department of Labor to remove a regulatory barrier which now restricts the types of small business employers who are permitted to band together to offer a retirement plan through a Multiple Employer Plan (MEPs). The order will also direct the U.S. Treasury Department to review rules that require withdrawing funds from 401(k) plans and other retirement saving accounts when retirees reach age 70 ½. Changing these rules would permit Americans to keep more of their money in tax-deferred retirement accounts for a longer period before requiring withdrawals.

“Forcing retirees to make minimum withdrawals from retirement accounts even if they don’t need the money denies older Americans the ability to continue to grow their savings,” Weatherford said. “As Americans are living longer, their retirement years are increasing, which will require more savings.”

Weatherford added that IRI is hopeful that President Trump’s action will spur Congress to act quickly to advance and enact the “Retirement Enhancement and Savings Act of 2018” (H.R.5282/S.2526). This legislation contains common-sense, bipartisan supported measures to help Americans save for retirement with private-sector savings options; increase access to lifetime income products; help savers make more-informed decisions about their retirement finances and enhance workplace retirement plan features.